Morgan Stanley Denies Owning South Seattle Man's Mortgage Loan

Comments

1
Reckless, even deliberately destructive, securitization of loans IS the 2008 financial collapse. The securitizers knew the loans were bad, but continued to push and push for more and more of them, because if they could get loans, no matter how shitty, it was a license to print money. What a swindle.

All those people who did this still have jobs and are still stinking rich beyond your biggest Powerball dreams, too. And they're doing it all again.
2
One of the worst parts of this whole mess is the legal hall of mirrors that lets loan originators, loan servicers, loan securitizers, purchasers of securitized debt, and all their associated lickspittles and camp followers endlessly point at each other when asked a question.

Interesting how the payments, when made, seem to magically divide up and flow into pockets of the thousand fathers of these bastard deals, but culpability is an orphan.
3
Can a Bank spokesman give out information about their dealings with individual clients?

4
It starts when a basic human need, like a home, becomes an abstraction in a computer or power game.

When it takes half your salary to afford a mortgage or rent.

5
Well...seems like the legal documents are wrong. Isn't there something in the law about incorrect document not being enforceable, you know legal?
6
Not enough people here saying how much worse it would be if Republicans were in charge!
7
Obviously, the fuckwits of the Stranger know nothing at all about how mortgages work. That won't stop you from pretending that you do, though. After all, this is Seattle, where pretense rules the day and the night.
8
Do explain it, Unbrain. Washed.
9
Outstanding post, Ansel, but please allow me to humbly clarify several points.

"This stuff is complex."

Actually no, it simply has many different levels to it.

Firstly, ultra-leveraging (referred to as "shadow banking") along with ultra-leveraged speculation is where the fantasy finance spectrum begins, using nonexistent capital, or virtual capital, or layer upon layer of debt, to finance something and everything.

Although securitization is indeed important --- it first began in America around 1907 (Samuel Straus) and really took off in the Roaring 1920s, leading up to the Great Crash of 1929 and the Great Depression (only halted by the passage of that legislation affecting Securities in 1933 --- back then it was the transformation of debt into stocks, while in the present it is the transformation of debt into securities), the primary cause of the bond market collapse, the freezing of LIBOR/EURIBOR, etc., was the greatest insurance swindle in human history, the utilization of "unregulated" (by design, by lobbying and by buying legislation) insurance, i.e., credit default swaps, or uncovered credit default swaps --- usually referred to as "naked swaps."

An unlimited amount of naked swaps were bought and sold: ergo you had $2 trillion of swaps purchased against $190 billion of outstanding external debt of Bear Stearns --- with the insurance payout, if BS was allowed to go backrupt, of $200 trillion --- far more money on the planet, and especially since they sold that "unregulated insurance" with zero capital on hand to back it up --- something routinely called financial fraud when your home insurance, health insurance or auto insurance company does such!

AIG Financial Products Division sold $460 billion worth of naked swaps, with the potential payout of from $20 trillion to over $40 trillion --- which was why the gov't took them over; which was why JPMorgan Chase, the originator of the credit default swap, took over Bear Stearns (which, together with Goldman Sachs and Deutsche Bank, they did a "bear run" on --- financial manipulation by the purchase of all those swaps against Bear Stearns [they weren't the only players, but they were the major players]).

Yes there were many, many levels of details: securitization, trash tranches, rehypothecation (using the same collateral multiple times), speculation via structured finance (junk paper, or credit derivatives [toxic assets]), but regardless, and including the fraudclosure model (originated from within JPMorgan Chase, 'natch!), the actual principal and primary reason for the global economic meltdown WAS NOT a 4% foreclosure rate in the USA, but that largest insurance fraud in human history, by way of those naked swaps. Those other details were simply more wealth theft (referred to as "wealth transfer" by the criminal media minions!).

It is crucial to understand this as Wall Street-financed books have spewed forth purposely attempting to redirect attention away from the real reason --- financial fraud/insurance fraud --- and attempting to lay the real blame elsewhere.

Thank you.
10
Thanks sgt_doom!
11
Where has that expert on all things benefitting the rich and conscienceless, dean.fuller, gone?